Parking meter rates in Downtown El Paso will increase from 75 cents to $1 an hour, but will remain free within the shopping district south of Paisano Drive on Saturdays.

The El Paso City Council voted unanimously on Tuesday to increase the rate and extend the free Saturday parking pilot program that was supposed to end this fall. Downtown metered parking will remain free on Sundays.

The increase will result in a parking meter rate of 25 cents per 15 minutes rather than 20 minutes.

REPORTER

Aaron Martinez

The revenue from the increase could generate about $355,000, said Paul Stresow, director of the city's International Bridges Department. The revenue will help pay off the remaining debt from the Plaza Theatre renovation.

"It shouldn't effect the usage, but revenue wise it will help us sustain the free parking on Saturdays and it will also be an increase of about $355,000 to our budget that will cover the Plaza Theatre debt," Stresow said. "We weren't able in the last two years to cover the Plaza Theatre debt, so we are borrowing from the general fund to cover that debt payment, so the primary reason (to increase the parking meter fees) is to cover that debt."

According to Stresow, the Plaza Theatre renovation debt is about $1.35 million and is expected to be paid off by 2026.

"We had dedicated parking meter revenue in pervious year's to cover the Plaza debt," Niland said. "And we learned that at this particular time we weren't covering that, that there was a gap and there was a deficit, so we increased the parking meter rate. So essentially it is now a dollar an hour and that will be more than enough to cover the outstanding debt service payment on the Plaza."

George Salom Jr., president of the Central Business Association, said when it comes to how the revenue from parking meters is being spent, especially on projects similar to paying the debt from the Plaza Theatre renovation, a serious discussion between city leaders and community members is needed.

"When it comes to parking and the revenue that it generates, we have to look at where that revenue is going, what it is going for and why we are having to increase it," Salom said. "I don't understand why we are taking parking meters away throughout downtown (on Saturdays) and at the same time increasing the fee. I think that is a question (on whether fees should be used to pay for the Plaza Theatre renovation) that needs to be revisited. I don't know if that is where parking meter (revenue) should be going."

Salom said the fee increase will have a harmful impact on businesses in the Downtown area.

"The extension of the free parking on Saturdays is something we obviously support," Salom said. "We are thankful the city saw the merits of continuing with that particular issue. But the Downtown area, whether we are talking about a retail store, a restaurant or any other business is at a true disadvantage than the rest of the city. If you go to Cielo Vista (Mall) or the Outlets, you have free parking, but in Downtown we are dealing with parking meters and parking citations, So it does put the Downtown area at a disadvantage. At this particular moment, we don't think raising the fees is a good thing. Downtown businesses have been suffering the past few years and things are barely starting to turn around and this is just another slap in the face to the businesses and customers."

The free Saturday parking program, which has been in effect for the past two years, allows free parking at meters within the shopping district to help "promote and encourage shopping Downtown" and "encourage economic growth," city officials said.

"There are a lot of exciting happenings Downtown and we are hoping that by extending the free Saturdays, we drive more business Downtown," Stresow said. "We have seen a little (of an increase of business Downtown). It has been kind of flat, but we are hoping that this next year we will see an increase."

Niland said the free parking on Saturdays is key in helping to build a stronger relationship with shoppers throughout the borderland and a chance to showcase the development of Downtown El Paso.

"Trade is the backbone of our economy and the shopper from Mexico injects a tremendous amount of capital and revenue via sales tax into our community," said Niland, who represents the Downtown area. "One of the things we want to do is continue to foster that sort of relation with our sister city. Also, we not only want to encourage Mexican shoppers but also El Pasoans to come Downtown, shop here and participate in all the new venues that are happening."

The ordinance passed by the City Council on Tuesday also shifted management and oversight of the parking meters from the Department of Transportation, which primarily deals with streets, to the City's International Bridges department.